Expleo Solutions downgraded to 'Sell' by MarketsMOJO due to bearish trend.

Expleo Solutions, a smallcap IT software company, has recently been downgraded to a 'Sell' by MarketsMOJO on October 15, 2024. This downgrade is based on several factors that indicate a bearish trend for the stock.
One of the main reasons for the 'Sell' call is the company's flat results in June 2024, with a decrease of -29.61% in its PAT (9M). Additionally, the company's ROCE (HY) has also hit its lowest point at 19.18%. These financial indicators suggest a decline in the company's performance.

From a technical standpoint, the stock is currently in a Mildly Bearish range, with the trend deteriorating from Mildly Bullish on October 15, 2024. This is further supported by factors such as MACD, Bollinger Band, and KST, all of which are indicating a bearish trend for the stock.

Another concerning factor is the falling participation of institutional investors in the company. These investors, who have better resources and capabilities to analyze company fundamentals, have decreased their stake by -0.52% in the previous quarter and now collectively hold only 1.89% of the company.

In terms of performance, Expleo Solutions has underperformed the BSE 500 index in the last 3 years, 1 year, and 3 months, with a return of -4.71% in the last year. This is a cause for concern for investors.

However, the company does have some positive aspects, such as a low Debt to Equity ratio (avg) of 0 times and a healthy long-term growth rate of 21.94% in operating profit. Its ROE of 14.8 also indicates a fair valuation, with a price to book value of 3.3. However, it is worth noting that the stock is currently trading at a premium compared to its historical valuations.

In conclusion, while Expleo Solutions may have some positive aspects, the recent downgrade to 'Sell' by MarketsMOJO and the bearish trend in its financial and technical indicators suggest caution for investors.